USD 1,10035.913.16%

The Drivers Module shows relationships between Alphabet's most relevant fundamental drivers and provides multiple suggestions of what could possibly affect the performance of Alphabet Inc over time as well as its relative position and ranking within its peers. Please also check Risk vs Return Analysis

Alphabet Inc is rated # 4 in operating margin category among related companies. It is one of the top stocks in current ratio category among related companies fabricating about 0.20 of Current Ratio per Operating Margin. The ratio of Operating Margin to Current Ratio for Alphabet Inc is roughly 5.07

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Alphabet

Operating Margin

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Operating Income

Revenue

X

100

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26.05 %

A good Operating Margin is required for a company to be able to pay for its fixed costs or pay out its debt which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against firm's competitors.

Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.

Alphabet

Current Ratio

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Current Asset

Current Liabilities

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5.14 times

Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e. Current Ration of 2 to 1).

Comparison

Current Ratio Comparison

Current Ratio

Alphabet Comparables

Alphabet is currently under evaluation in current ratio category among related companies.

Operating Margin

Alphabet Comparables

Alphabet is currently under evaluation in operating margin category among related companies.

Alphabet Inc., through its subsidiaries, provides online advertising services in the United States and internationally. Alphabet Inc. was founded in 1998 and is headquartered in Mountain View, California. Alphabet operates under Internet Information Providers classification in USA and traded on NASDAQ exchange. It employs 80110 people. more